Central bank: liquidity still serious in October
14 November 2007
Liquidity in China's financial setor is still high, according to the People's Bank of China's October report, Economic Observer said (in Chinese). The broad money supply in October was up 18.4% over the same time last year to US$5.3 trillion, while the narrow money supply reached US$2 trillion, an increase of 22.21% over last year. Bank savings decreased by US$61 billion in October. Most withdrawals of savings were believed to have flowed into the stock market. Total credit loans increased by US$18 billion on the back of the drop in savings. The central bank will continue to use tightening policies such as raising interest rates, analysts said.
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